Stablecoin TUSD Depreciates to $0.984 Amid Rumors of Sell-off on Binance
TrueUSD (TUSD), a stablecoin reportedly associated with crypto mogul Justin Sun, is experiencing a depegging phase, plummeting to as low as $0.984 on the Binance exchange.
Over the past 24 hours, the TUSD/USDT trading pair recorded a trading volume exceeding $410 million, constituting 62% of the global TUSD volume.
1-hour chart of the TUSD/USDT pair on Binance as of 10:40 AM on January 16, 2024
The specific cause of this volatility remains unclear, but data from cryptocurrency analytics firms indicate that TUSD's market capitalization unexpectedly dropped by $100 million, continuing a downward trend since reaching its peak of $3.8 billion at the end of October 2023.
Over the past month alone, the stablecoin's market cap has dwindled from $2.4 billion to the current $1.9 billion.
Market capitalization fluctuation of TUSD in the past month. Source: CoinMarketCap (16/01/2024).
Immediately, rumors surfaced attributing TUSD's depegging to a sell-off event on Binance.
TUSD has also not been included among the stablecoins supported to participate in Binance's latest launchpool project, Manta Network (MANTA), fueling speculation within the community.
Initially supported by Binance as an alternative to the USD-backed BUSD after regulatory pressure in February 2023, TUSD was promoted through various incentive programs by the exchange to increase adoption. However, in July 2023, Binance introduced a new stablecoin named FDUSD, gradually shifting preference away from TUSD to FDUSD.
